On the evening of March 7, Shanghai Silicon Industry (688126. SH, share price of 20.56 yuan, market value of 56.482 billion yuan) issued a plan on issuing shares and paying cash to purchase assets and raise matching funds and related party transactions, and intends to acquire minority stakes in its three subsidiaries, Shanghai Xinsheng Jingtou Semiconductor Technology Co., Ltd. (hereinafter referred to as Xinsheng Jingtou), Shanghai Xinsheng Jingke Semiconductor Technology Co., Ltd. (hereinafter referred to as Xinsheng Jingke) and Shanghai Xinsheng Jingrui Semiconductor Technology Co., Ltd. (hereinafter referred to as Xinsheng Jingrui). In order to realize the full control of the core assets of 300mm (12-inch) large silicon wafers of the second phase of the Shanghai silicon industry project.

In this transaction, Shanghai Silicon Industry intends to issue shares to Haifu Semiconductor Fund and pay cash to purchase 43.9863% of the equity of Xinsheng Jingtou held by it, to pay cash to Jingrong Investment to purchase 2.7491% of the equity of Xinsheng Jingtou, to issue shares to the second phase of the Industrial Fund to purchase 43.8596% of the equity of Xinsheng Jinke, and to issue shares to Shanghai Flashcore and pay cash to purchase 5.2632% of the equity of Xinsheng Jinke. It is planned to issue shares to China National Building Materials New Materials Fund to purchase 24.8780% of the equity of Xinsheng Jingrui held by it, to issue shares to Shanghai Investment Management to purchase 14.6341% of the equity of Xinsheng Jingrui held by it, to issue shares to the mixed reform fund to purchase 9.2683% of the equity of Xinsheng Jingrui held by it, and to issue shares to no more than 35 specific investors to raise matching funds.

According to the above plan, the target companies are the main body of the implementation of the second phase of the Shanghai silicon industry project, of which Xinsheng Jingzhi Investment is the shareholding platform, Xinsheng Jingke is mainly engaged in 300mm semiconductor silicon wafer cutting, polishing and epitaxy related business, Xinsheng Jingrui is mainly engaged in 300mm semiconductor silicon wafer pulling related business, and Xinsheng Jingke and Xinsheng Jingrui have now built a 300mm semiconductor silicon wafer production line with a higher degree of automation and higher production efficiency. The main business of the target company is the same as that of the listed company.

It should be noted that in 2024, the global semiconductor wafer shipment area will decline by 2.67% compared with the same period last year, of which the shipment area of 300mm semiconductor silicon wafers has shown a quarter-by-quarter growth trend, but the demand for 200mm and below silicon wafers is still relatively sluggish.

The

300mm semiconductor silicon wafer market has been monopolized by international leaders for a long time, and there is still a large gap in the localized supply, especially the domestic supply of high-end semiconductor silicon wafers. However, the core technology research and development of large-size semiconductor silicon wafers is a process of challenging the limits, and the requirements for parameters such as crystal growth, surface particles, planarization, and warpage are much higher than those of small-size silicon wafers.

At present, the product size of listed companies covers 300mm, 200mm and below, and the product categories cover semiconductor polished wafers, epitaxial wafers, SOI (silicon on insulator) silicon wafers, and the layout of other semiconductor materials such as piezoelectric thin film materials, while taking into account the localization of the upstream and downstream of the industrial chain, realizing the downstream logic, storage, image sensor, Full coverage of power and other chip application fields and full coverage of domestic customer needs.

Shanghai Silicon Industry said that after the completion of this transaction, the listed company will hold a total of 100% of the equity of the target company through direct holding and through its wholly-owned subsidiary, Shanghai Xinsheng Semiconductor Technology Co., Ltd. The acquisition of a minority stake in the target company is an extension of the strategic development of the listed company, which is conducive to further its management integration, synergistic effect, and improvement of operation and management efficiency.

"As of the signing date of this plan, the appraisal of the target company has not been completed, and the appraisal value and transaction price of the underlying assets have not yet been determined." Shanghai silicon industry said.